CDO Issuance Continues To Increase

Collateralized debt obligations rated by Moody's Investors Service set records for issuance and volume last quarter.

  • 22 Nov 2006
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Collateralized debt obligations rated by Moody's Investors Service set records for issuance and volume last quarter. The number of rated transactions grew 14% to 172 from the second quarter. Compared to the third quarter of 2005, the number of new transactions grew 76%, according to the ratings agency. Moody's anticipates this momentum will continue to the end of the year. It predicts that all of 2006 will be about 55% more than last year's deals and volume.

Collateralized loan obligations, cash resecuritizations and hybrid CDOs made up about 50% of the new ratings in the third quarter and about 72% of new volume. There were 45 CLOs in the third quarter and 23 newly rated cash resecuritizations. For U.S. CDOs, about 48% of the collateral was corporate bonds, while 39% was structured debt.

The ratings agency, however, did not see as much utilization of loan-only credit default swaps as it had anticipated. It said it was used to a limited degree in synthetically referencing single-name loans in existing cash flow CLOs. Author Richard Michalek, v.p. and senior credit officer, was traveling and could not be reached. Suzanna Sava, analyst and a co-author, did not return a call.

  • 22 Nov 2006

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 1,284 2 30.09
2 Barclays 633 1 14.82
3 BNP Paribas 509 1 11.91
4 Citi 467 1 10.94
5 Morgan Stanley 455 1 10.66

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 9,235.10 31 12.19%
2 Barclays 7,853.42 22 10.36%
3 Bank of America Merrill Lynch 7,473.95 24 9.86%
4 JPMorgan 7,225.34 25 9.54%
5 Wells Fargo Securities 6,258.35 24 8.26%